UPS Teamsters Win $1.3 Million Wage Theft Lawsuit
6,000 New York City workers will receive money in settlement
Members of Teamsters Local 804 announced a $1.3 million victory today in a class action lawsuit against UPS for illegally deducting money from employees’ paychecks. About 6,000 UPS workers in the New York City region are part of the settlement.
“This was a union member-led fight. They blew the whistle, filed a class action lawsuit, and won,” said Teamsters Local 804 President Vinnie Perrone. “We urge every affected member to opt-in to the settlement and make the company pay for what they did wrong.”
Within two weeks, union members who had funds illegally withheld from their paychecks will get a packet in the mail to opt in to the settlement.
For years, UPS management deducted the money from union members’ paychecks to bolster the company’s charitable donations to United Way. Under the law, these payroll deductions have to be voluntary and authorized in writing. But UPS managers repeatedly and systematically failed to keep written records or get members’ approval.
“A couple years ago, I noticed UPS was taking money out of my check every week and giving it to the United Way,” said Fred Lubarsky, a Local 804 member at UPS. “When I told my manager that I never agreed to this and wanted it to stop, he gave me the run around. I am proud to be part of Local 804, who took on this fight and got back the money UPS stole from me and then some. I’m thinking of donating it to a charity of my choice — not UPS.”
Under the settlement, UPS has to reimburse members for the unauthorized paycheck deductions, plus a 40% penalty. United Way will also get to keep the money that was donated. The union will donate any penalty money that is not claimed in the settlement to St. Jude’s Hospital and St. Mary’s Children’s Hospital.
The class action lawsuit was filed in 2019. Members were represented in the lawsuit free of charge by attorneys Nathaniel Charny and Ben Dictor, who also represent Local 804.
“Nat and Ben took the fight to UPS and did an outstanding job for our members,” Perrone said.